Notable Mergers and Acquisitions of the Day 11/10: (PNK) (CE) (BAX)

• Pinnacle Entertainment, Inc. (NYSE: PNK) entered into definitive agreements to sell its Boomtown Reno casino-resort operations and land adjacent to the facility in two separate transactions. Total proceeds from the transactions are expected to be approximately $22.2 million, with the potential for an additional $3.8 million if an option granted to the casino-resort buyer is exercised.
  
  In the casino-resort transaction, the Company entered into a definitive agreement to sell Boomtown Casino and Hotel Reno and related operations to M1 Gaming Reno, LLC and SJP Reno Property, LLC for total cash consideration of approximately $12.9 million. In addition, the Company granted the buyers a one year option to purchase 100% of the Company's membership interest in the current gaming licensee, PNK (Reno), LLC and additional land adjacent to Boomtown Reno for $3.8 million. This transaction is subject to regulatory approval and is expected to close by mid-2012. The Company classified the Boomtown Reno segment as a discontinued operation effective in the third quarter of 2011.
  
  
• Celanese Corporation (NYSE: CE), announced an agreement to acquire certain assets from Ashland Inc. (NYSE: ASH), including two product lines, Vinac and Flexbond, which will support the strategic growth of the Celanese Emulsion Polymers business.
  
  The transaction is expected to close within 60 days, subject to satisfaction of closing conditions.
  
  Terms were not disclosed, but revenues of Vinac and Flexbond were approximately US$45 million in 2010.
  
  
• Baxter International Inc. (NYSE: BAX) announced today that the company has completed its planned acquisition of Baxa Corporation for a cash consideration of $380 million. Baxa develops pharmacy technology that enhances the efficiency and safety of oral and IV dose preparation and delivery.
  
  Annual sales for Baxa were $157 million in 2010, and Baxter expects the top-line growth of this business to be accretive to the company’s future sales growth. In addition, Baxter expects this transaction to be dilutive to 2012 earnings by $0.03 to $0.05 per diluted share primarily related to acquisition-accounting and transaction-related expenses. Excluding these items, the acquisition is neutral to full-year 2012 earnings and increasingly accretive thereafter.

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